Important Statistics To Inform Business Leadership In 2022

The winds of business markets are constantly changing, and business leaders need to stay attuned to where the breeze is blowing to steer their organizations in the right direction. However, leadership itself can shift — as the following surprising statistics demonstrate. Knowing a bit more about what business leadership looks like in 2021, leaders will have a firmer foundation from which they can navigate their businesses to success.

Companies Invest in Training and Education

Organizations understand the importance of a well-trained workforce — how training and education can help their teams become more innovative, cooperative and productive. Yet, it seems many businesses fail to adequately prepare their leaders for their roles.

According to one leadership research report, U.S. companies collectively spend over $160 billion on employee training and education, but more than 58 percent of managers never receive management training. An untrained manager is likely to be less effective in their position: less capable of improving employee performance, less successful in communicating with stakeholders, less proficient at responding to issues and more.

Leaders interested in improving their knowledge and skills, especially as their organizations and markets shift, can pursue their own continuing education. Some leaders might find their employers more than willing to fund training through online courses in leadership from top universities to train managers at every level of an organization. However, investing in one’s own professional improvement can also provide career returns in the future.

Employers Have Problems With Leader Burnout

Sometimes, feeling exhausted after a day at work is a sign of a job well-done, but sometimes, that exhaustion suggests a dangerous condition that could result in negative health and career outcomes. That condition, called burnout, is a type of fatigue caused by chronic stress that has not been effectively managed. Burnout can come from any type of prolonged stress, but the workplace is the most common culprit.

Unfortunately, many employers seem to be experiencing a plague of burnout within their leadership ranks. A survey of over 15,000 business leaders in 2021 found that 60 percent of leaders feel physically, mentally and/or emotionally worn out at the end of every workday, which is one of the most significant signs of burnout.

The consequences of burnout can be severe. For most, it means less efficacy in one’s role, which might result in a stalled career. For some, it could mean the development of grave health conditions like heart disease or diabetes. Organizations, too, suffer penalties from widespread burnout, as nearly half of leaders who experience burnout plan to leave their current employer to find more balanced roles elsewhere.

Organizations need to work with leadership to combat burnout. Leaders can start by developing a workplace culture that offers empathy and support to all employees. Engaging with work without setting unreasonable goals or neglecting self-care is a good way for leaders to remain productive and avoid burnout.

Female Leaders Are On The Rise

It seems that organizations are finally answering calls for greater diversity in business leadership teams. Between 2015 and 2020, women in the c-suite increased from 17 to 21 percent. While this falls short of the goal of equal representation, it demonstrates a trend toward female leadership, which is undeniably a positive development.

Businesses benefit from greater leadership diversity. Female leaders provide different perspectives from their male colleagues’, which can give an organization a unique competitive advantage. Additionally, women can offer slightly different leadership skills, such as stronger soft skills like collaboration, communication, critical thinking and professionalism.

Unfortunately, not all women are rising into leadership roles at the same rate. Women of color continue to struggle to gain the same treatment and representation as white women. All business leaders should work toward gender and racial equity in the workplace, which means including people of all backgrounds in leadership circles.

Leaders who are aware of changing trends can keep their organizations afloat and sailing forward. In 2021, leaders need to be willing to invest in their own professional improvement, they need to commit to self-care to avoid burnout; and they need to be willing to introduce diversity into their leadership ranks. In doing so, leaders and businesses both can reach success.